A New Year, A New Tax Season

Important dates and reminders for 2020

Happy 2020! A new year means a new tax season, and we have some important information to share in order to better serve you:

2020 SOUKUP BUSH DEADLINE

February 24, 2020 – Please provide all documents and required information for partnership and S-corporation tax returns by February 24, 2020. In order to provide our best service, your tax return will be extended and completed after April 15, 2020, if there is still outstanding information needed by February 24, 2020.

Please Note: extended business returns will be prepared after the individual filing deadline, April 15, 2020. Thus, we will also be filing an extension for your individual return if we extend your business return.

March 23, 2020 – Please provide all documents and required information for individual and C-corporation tax returns by March 23, 2020. In order to provide our best service, your tax return will be extended and completed after April 15, 2020, if there is still outstanding information needed by March 23, 2020.

2020 FILING DEADLINES (FOR THE 2019 TAX YEAR)

January 31, 2020 – Forms 1099 and Form 1096 must be filed with the IRS for any non-employee compensation payments reported in Box 7

February 28, 2020 – Forms 1099 and Form 1096 must be filed with the IRS for all other payments if the form is paper-filed with the IRS

March 16, 2020 – Federal and state income tax returns are due for flow-through entities, including partnerships and S-Corporations

March 31, 2020 – Forms 1099 and Form 1096 must be filed with the IRS for all other payments, if the form is electronically filed with the IRS

April 15, 2020 – Federal and state income tax returns are due for individual taxpayers, C-Corporations, and Estates and Trusts

September 15, 2020 – Federal and state income tax returns are due for flow-through entities, including partnerships and S-Corporations if extended

October 15, 2020 – Federal and state income tax returns are due for individual taxpayers, C-Corporations, and Estates and Trusts if extended

2020 ESTIMATED PAYMENT DEADLINES

January 15, 2020 – 4th quarter estimated payments for 2019 are due to the IRS and Colorado Department of Revenue

April 15, 2020 – 1st quarter estimated payments for 2020 are due to the IRS and Colorado Department of Revenue

June 15, 2020 – 2nd quarter estimated payments for 2020 are due to the IRS and Colorado Department of Revenue

September 15, 2020 – 3rd quarter estimated payments for 2020 are due to the IRS and Colorado Department of Revenue

Additionally, please note that an extension to file is not an extension to pay. Your 2019 tax liability will still be due on April 15, 2020, even if you file an extension. If you do not pay your tax liability in full by April 15, 2020, the IRS may assess interest and penalties.

Interest accrues on the unpaid balance of your tax liability and compounds daily from the due date of the return until the balance is paid in full. The IRS charges interest at the federal short-term rate plus 3%.

A failure-to-pay penalty is charged for failing to pay your tax by the original due date. The late payment penalty is 0.5% of the tax owed after the due date, for each month or part of a month the tax remains unpaid, up to a maximum of 25% of the unpaid amount.
A failure-to-file penalty is charged on returns filed after the due date or extended due date, absent a reasonable cause for filing late. You will not be subject to this penalty if you file an extension by the original due date, and complete your return by the extension deadline. If your return is not filed or extended time, the failure-to-file penalty is 5% of the unpaid taxes for each month or part of a month that a tax return is late, up to a maximum of 25% of the unpaid balance. If your return is over 60 days late, there is also a minimum penalty for late filing – the lesser of $210 or 100% of the tax owed.

Interest and penalties can add up quickly. We highly recommend paying your tax liability on time to avoid excess interest and penalties. If you cannot pay the entire liability due, there are payment plans available through the IRS. If you will be extending your 2019 tax return, we can provide you with payment vouchers for your estimated tax liability. We will help you estimate this amount when we complete your extension.

Please let us know if you have any questions about your 2019 taxes, upcoming deadlines, or the extension process. We are excited to serve you and are looking forward to a great tax season!

EMPLOYEE SPOTLIGHT | Abby Johnson

Abby has been with the Soukup, Bush & Associates team since August 2018. She grew up in Michigan and moved to Colorado in 2011, where she graduated from Pueblo Community College in December 2014. She currently assists with all aspects of administrative management as well as processing both individual and corporate income tax returns.

In her spare time, Abby enjoys spending time with her husband, Brandon. They love watching sports, especially baseball, exploring Fort Collins, and hanging out with friends.